Maker of RAW Rolling Papers Ordered to Cease Marketing Claims

2/09/2023

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Rolling paper company Republic Brands has won a permanent injunction in a federal lawsuit against HBI International, the maker of RAW® Organic Hemp rolling papers, which requires HBI to cease promoting and selling certain products and stop making certain promotional statements. The plaintiff, Republic Brands, is the rolling paper company behind OCB®, JOB®, and other rolling paper brands.

Following a jury verdict last month that HBI International engaged in unfair business practices and violated the Illinois Uniform Deceptive Trade Practices Act, the rolling paper company has been barred from suggesting that its products are made by artisanal craftsmen in Alcoy, Spain — the birthplace of the modern rolling paper — and that it contributes its proceeds to a charitable entity or foundation known as the “RAW Foundation,” which the court found did not actually exist.

In total, the United States District Court for the Northern District of Illinois on January 31, 2023, permanently enjoined HBI International from communicating or otherwise implying — whether via marketing material or statements by personnel — any of the following:

  • That HBI and/or RAW® contributes its funds or proceeds to a charitable entity/foundation dubbed the “RAW Foundation”
  • That RAW® Organic Hemp rolling papers are “unrefined”
  • That RAW® Organic Hemp rolling paper adhesives are made from natural hemp gum
  • That RAW® Organic Hemp rolling papers are the world’s first or only organic (or organic hemp) rolling papers
  • That RAW® Organic Hemp rolling papers are made in Alcoy, Spain
  • That HBI International shall not include a packaging “stamp” using the word Alcoy or referring to Alcoy
  • That RAW® Organic Hemp rolling papers utilize wind power
  • That RAW® Organic Hemp rolling papers are made from the center of hemp stalks
  • That HBI or its founder Joshua Kesselmen invented rolling paper pre-rolled cones
  • That OCB® Organic Hemp papers are knock-offs, “RAWnabees,” copies, or fake versions of RAW® rolling papers

The court ordered HBI to stop promoting, selling, or distributing products in any way that would violate the enjoinment. Additionally, after May 31, 2023, HBI is foribbden from promoting, selling, or otherwise distributing rolling paper products under any of its other brands (which includes Elements®, Juicy Jays®, and others) in packaging that includes an Alcoy stamp.

HBI International did not immediately respond to a request for comment.

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Illinois to Conduct Disparity Study for Adult-Use Cannabis Industry

2/09/2023

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The Illinois Cannabis Regulation Oversight Office (CROO) on Tuesday announced the commissioning of a Disparity and Availability Study for adult-use cannabis licenses as required by the state’s Cannabis Regulation and Tax Act. 

The study will collect and analyze data and will report on whether discrimination exists in the Illinois cannabis industry. The CROO said that if the study finds that discrimination exists, it will evaluate the impact of the discrimination on the state and its residents regarding entering and participating in the cannabis industry. The study will include recommendations for reducing or eliminating any identified barriers to entry.   

In a press release, Acting Cannabis Regulation Oversight Officer Erin Johnson called the study “a vital assessment of the state’s cannabis social equity licensing system.”  

Last year, the state published a formal request for proposals to find a vendor to conduct a Disparity Study of the cannabis licensing system. The request resulted in a contract with the Nerevu Group, which is a 100% minority- and women-owned group of contractors and subcontractors from Peoria, Decatur, Springfield, Chicago, and additional locations across the country. 

Nerevu Group Founder and President Reuben Cummings described the work as “essential in identifying potential disparities and suitable remedies.”  

The final report to the governor is due in one year and updates will be posted to the CROO website. 

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New Jersey’s First Black Woman-Owned Dispensary Opens This Week

2/09/2023

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New Jersey’s first Black woman-owned retail cannabis dispensary opens this week in Waterford. The dispensary, Holistic Solutions, is owned by Suzan Nickelson, who was the first Black woman to majority own and operate a medical cannabis dispensary in the state. 

Nickelson is also the first woman to own a cannabis license in the Garden State.   

“Like the women who raised me, I believe cannabis is a plant of reverence and spirituality that has been given to people to heal – however intentional stigmatization led to what we went through in the War on Drugs that disproportionately hurt entire communities of Black and brown people. This is what fueled me to work relentlessly to open the doors of Holistic Solutions. The women in my family passed down generational knowledge of working with various herbs for healing and spirituality to me, and I look forward to using that knowledge to run my own cannabis business so others can understand just how powerful this plant can be in a pursuit of wellness and healing.” — Nickelson in a press release 

Nickelson also runs Ital Daughters LLC, a cannabis and hemp consulting company that specializes in assisting minorities, women, and veterans in addition to local municipalities and stakeholders in understanding compliance and regulatory aspects of the industry. 

Holistic Solutions is partnered with Eastbound Collective, which serves as a minority partner, and was founded by Patrik Jonsson last April.  

“I am delighted to support Holistic Solutions on this important project. While there is now a large number of conditional cannabis licenses in NJ, there is a very limited number of operators with the funding, site control, and experience to capitalize on having a license,” Jonsson said in a statement. “Our team does. This does not only ensure that we can follow through with our commitments, but we can open quickly and provide tax revenue to the Township in 2023.” 

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Former NFL Star Calvin Johnson’s Cannabis Company Launches Nano-Cannabinoid Product Line

2/09/2023

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Primitiv, the cannabis company owned by former Detroit Lions teammates Calvin Johnson Jr. and Rob Sims, last week launched their Primitiv Performance line which uses a proprietary blend of electrolytes, vitamins, and water-mixable nano phytocannabinoids – including CBD, CBG, CBC, and CBN – which aims to aid in rehydration, recovery, and support the immune system.  

The company describes the product as “designed for people living an athletic lifestyle to use before, during and after a workout.” The product line includes 25-milligram nano-CBD stick packs which come in four flavors and a broad-spectrum transdermal topical cream. 

“I’ve long been an advocate of cannabis as a holistic way to help my body recover from the trauma it faced each day on the gridiron and knew there were many other ways to unleash the power of this plant into our daily lives. Primitiv Performance was designed to showcase these non-psychoactive phytocannabinoids by showcasing them in a way that is familiar to people already incorporating a rehydration drink mix or topical cream into their daily lives, all while further educating consumers about the power of this plant.” — Johnson in a press release 

Primitiv Performance was developed in collaboration with CYP, a company that focuses on innovating higher standards of cannabis consumption by developing the fastest-acting, most bioavailable, and predictable products for the cannabis and healthcare markets through the integration of its High-Performance Nano Emulsion technology.   

In a statement, James Barr, co-founder of CYP, said the nanotechnology used in the Primitiv Performance line “allows consumers to feel the active ingredients shortly after use because the cannabinoids are so small that they mostly bypass the intestinal system and enter directly into the bloodstream, therefore creating a more targeted, predictable, and bioavailable product.”    

The product line is currently available online via the Primitiv Performance website. 

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Five Marketing Mistakes Cannabis Companies Should Avoid

2/09/2023

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Editor’s note: This guest editorial was contributed by Steve Knapp, the founder and CEO of SM Services.

A complex, technical, and attention-grabbing sector? That description applies to both cannabis and marketing. But many cannabis insiders aren’t equally versed on the ins and outs of effective marketing campaigns. Whether you run a B2B or B2C business, connecting effectively with customers requires a fair bit of know-how and understanding of the digital advertising landscape.

It’s easy to think a DIY approach to marketing your business will get customers in the door, but organic growth is easier said than done. Here are five common marketing mistakes and how you can avoid these pitfalls to get your brand in front of the right people.

1. When Marketers Wear Too Many Hats

Time and money aren’t always as plentiful as terpenes and cannabinoids in this industry. It can be tempting to overload your team with marketing tasks outside their expertise or capacity. Even if you can hire qualified marketing specialists, it’s easy to overextend those staff until they’re no longer nimble or effective.

Harnessing an effective omnichannel approach becomes difficult when marketers are distracted with too many responsibilities. Instead of piling on so many hats that your marketing team resembles a British wedding, go back to basics to ensure your strategy is clear and focused.

Establish a clear accountability map so each marketing team member knows exactly what they’re responsible for. Clear up communication roadblocks so that each stakeholder is both empowered and informed. Be honest about bandwidth. And don’t be afraid to rely on outside advertising experts and experienced strategists to establish up-to-date best practices or take over tasks beyond your team’s capacity.

2. Not Leveraging Website Traffic

Driving web traffic is a key goal of any digital marketing strategy. Your web presence can be invaluable to the success and longevity of your business. But you might be leaving crucial resources on the table if you don’t leverage all the data that comes with each visitor to your website.

Be sure to collect email addresses, phone numbers, names, product preferences, and more from all your digital visitors. Earned media platforms like Twitter, Facebook, Instagram, and LinkedIn might be the web equivalent of rental properties, but your email list is one of your business’s most valuable assets.

The more information you collect (within compliance regulations, of course), the better you can understand what makes your customers tick— and what appeal you hold for prospects. Use Google Analytics and other free developer tools to learn more about traffic behavior like top landing pages, button engagement, daily page visits and other trends.

3. Not Using Modern Technology for Programmatic Ads

Speaking of data-driven marketing tactics, programmatic advertising — which automates your media buying process — has grown by leaps and bounds in step with tech advances. While geofencing is a great way to serve ads and collect information about smartphone users in a specific area, it’s a mistake to treat that blanket approach as if it were a real strategy.

It’s best to only serve ads to active cannabis or CBD shoppers — this ensures your ads reach the most relevant audience possible. Retargeting — that is, serving ads to someone who has already visited your site or is otherwise flagged as a lead — ensures your programmatic/geo-targeting efforts are successful. Retargeted ads do this by increasing the number of customer touchpoints for relevant audiences and keeping your brand top of mind as they make purchasing decisions.

That’s not the only way to target your programmatic ads. Spending your advertising dollars on placements where your core audience is spending their free time is also smart. If you can catch your audience at leisure on websites and gaming apps when they are in a relaxed, positive, and comfortable state of mind, you increase the chances of not only positive associations but also impulse purchases.

4. Not Following Critical Cannabis and CBD Ad Regulations

One of the biggest mistakes cannabis operators can make is to think marketing compliance isn’t as important as OSHA regulations or childproof packaging. Different legal states have their own marketing or advertising regulations for cannabis and CBD, of course. But digital advertising is subject to extra scrutiny because it must be compliant with state regulations as well as the terms of service set by Google and other major search engines, as well as social media platforms.

Be sure your marketing team is deeply familiar with local guidelines on restricted verbiage and imagery, as well as required verbiage and regulations on ad placement. Don’t rest on your laurels, either — regulations can and do change over time, so it’s important to stay up to date. It’s important, too, to keep one eye on developments in the alcohol, tobacco, and Big Agriculture industries to see what kinds of regulations the federal government might impose when cannabis is eventually legalized.

5. Not Selecting a Workable e-Commerce & Merchant Processing Solution

It might seem like federally legal CBD is the darling of e-commerce platforms large and small. But not all e-com solutions and merchant processors are hemp friendly. This is a critical consideration for new CBD brands and startups hoping to have an online retail presence.

Before you invest in building a website, make sure you have an online store solution and a merchant bank that will support your business. Vet your vendors and financial networks carefully — you don’t want your site to get shut down, or for critical revenue to get tied up in electronic banking purgatory.

And of course, do ask trusted partners and marketing experts for recommendations that have proven out. It’s easy to avoid many marketing mistakes if you go to your community for a gut check, and follow the lead of experts who have been finding effective solutions year after year.

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Survey: 61% of Americans Plan to Incorporate Cannabis on Valentine’s Day

2/08/2023

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A survey conducted by Wired Research found 61% of American adults intend to incorporate cannabis into their Valentine’s Day plans. The survey, which was commissioned by Verano Holdings, found childless adults were more likely to include cannabis in their plans (69% vs. 57%) and men were more likely than women to plan to use cannabis on Valentine’s Day (66% vs. 57%). 

The survey found a perceived increase in romance and sexual performance by incorporating cannabis with 24% of respondents saying cannabis use will put them in a more romantic mood. Another 23% of those surveyed said that cannabis improves their sex life. 

In a statement, CannaSexual sex coach Ashley Manta said that “Cannabis can have a decidedly positive impact on romance and intimacy, especially on occasions like Valentine’s Day where there are so many external stresses and pressures to make the day special.”  

Dr. Shannon Chavez, a psychologist and nationally recognized sex therapist, added that the survey’s data shows “Americans use cannabis to relax or improve their mood, which can help people be present and more connected, which is crucial to a better love life.”  

“Valentine’s Day is a great opportunity for couples to try something new together and try a more dynamic and less formulaic approach to intimacy, which cannabis can help inspire.” — Chavez in a statement 

The survey found that Gen Z and Millennials polled were significantly more likely than Gen X and Boomers to include cannabis in their Valentine’s Day plans (70% vs. 57%). Additionally, individuals living in the Northeast were the most likely to use or gift cannabis this year (66%) compared to 55% of respondents in the Midwest, 61% in the West, and 63% in the South. 

Another 37% of respondents said they would be happy to receive a gift of cannabis on Valentine’s Day. 

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NYPD Files Lawsuits Seeking to Shut Down Unlicensed Cannabis Sales

2/08/2023

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The New York City Police Department (NYPD) on Tuesday filed four lawsuits against companies it accuses of selling cannabis illegally in Manhattan. The complaints allege that a police officer observed the sale of cannabis products at these establishments to underage individuals and seeks to shut them down for the illegal sale of cannabis products and operating without a license.  

Additionally, the Manhattan district attorney’s office mailed letters to more than 400 known smoke shops in the borough, warning them of the potential for eviction proceedings for unlawful cannabis sales. 

In a press release, New York City Mayor Eric Adams (D) said that while cannabis legalization “was a major step forward for equity and justice” city officials are “not going to take two steps back by letting illegal smoke shops take over this emerging market.” 

“We are laser-focused on protecting the health and well-being of New Yorkers and ensuring this emerging industry delivers equity to those who deserve it the most. I also want to acknowledge the tireless work of the New York City Police Department and the Sheriff’s Office to combat the proliferation of unlicensed smoke shops across our city and keep New Yorkers safe.” — Adams in a statement 

District Attorney Alvin Bragg said that shops have been selling “unlicensed, unregulated, and untaxed cannabis products” for nearly two years throughout Manhattan. 

“Just as we don’t allow endless unlicensed bars and liquor stores to open on every corner, we cannot allow that for cannabis. It’s not safe to sell products that aren’t properly inspected and regulated for dosage, purity, and contaminants,” he said in a statement. “And it certainly isn’t fair to competing businesses. Advocates fought hard to put racial equity at the center of New York’s cannabis legalization regime.”  

Bragg added that officials “want to give New York’s legal cannabis market a fair chance to thrive and give New Yorkers the security of knowing that a safe, orderly system is in place for cannabis dispensaries.”

“Together, we can level the playing field for New York’s legal cannabis market and deliver on the promise of equity and fairness that legalization advocates fought so long and hard for,” Bragg said in the statement. 

The four lawsuits were filed against Runtz Tobacco, Saint Marks Convenience & Smoke Shop, Sogie Mart Rolls & Puffs, and Broadway. 
 

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Scotts Miracle-Gro Subsidiary Suing Cannabis Industry Investment Firm

2/08/2023

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Hawthorne Collective Inc, a subsidiary of Scotts Miracle-Gro Co, is suing investment company JW Asset Management LLC and cannabis company TerrAscend Corp, claiming the duo is violating U.S. antitrust laws and trying to “ruin” Hawthorne’s $175 million interest in a cannabis industry acquisition firm, Reuters reports.  

In the lawsuit filed in Manhattan federal court, Hawthorne accuses JW and TerrAscend of attempting to dominate the board of directors of RIV Capital Inc. JW controls TerrAscend. Last year, RIV Capital, with help from a multimillion-dollar investment from Hawthorne, acquired New York licensed cannabis cultivation and retail company Etain LLC for $247 million. TerrAcsend also sought to buy the New York company. 

According to the lawsuit, JW, the largest shareholder in RIV, has since tried to oust three RIV directors nominated by Hawthorne and replace them with its own “chosen” members, which Hawthorne claims violates antitrust laws. 

In the lawsuit outlined by Reuters, Hawthorne said that the “series of anticompetitive or otherwise wrongful and improper actions” were undertaken “to stop RIV Capital’s entry into the New York-New Jersey market.” The lawsuit claims that stopping RIV’s move into New York would reduce industry competition, to the benefit of TerrAscend. 

The case is The Hawthorne Gardening Company v. JW Asset Management LLC. It is filed in the U.S. District Court, Southern District of New York. 

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Australia Legalizes Psilocybin and MDMA for Medical Purposes

2/07/2023

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Australia’s Therapeutic Goods Administration (TGA) announced last week it was making the psychedelic substances psilocybin and MDMA legal for medicinal purposes starting July 1, 2023.

Psilocybin and MDMA were each approved for medical use by the TGA “in combination with psychotherapy for treatment-resistant mental illness in medically controlled environments in certain circumstances,” the agency said in its announcement. The surprise move marked the world’s first federal action to legalize medicinal psychedelics and follows months of public input — currently, the drugs are considered “prohibited substances” in Australia and are only available in controlled clinical trials.

Under the new rules, psychiatrists will be able to prescribe MDMA (commonly known as ecstasy or Molly) for post-traumatic stress syndrome, and psilocybin for depression. Before prescribing the psychedelics, however, the psychiatrists will need approval from both a human ethics committee and under the Authorised Prescriber Scheme, the agency said in a press release.

TGA also warned that because “patients may be vulnerable during psychedelic-assisted psychotherapy,” the program would require “controls to protect these patients.” Additionally, as there are not currently any Australia-based medications containing MDMA or psilocybin, participating psychiatrists will need to import the substances.

TGA said in the announcement that its decision had been influenced both by research into psychedelics for treatment-resistant conditions as well as thousands of public comments submitted in favor of psychedelics therapy.

Australia approved the medical use of cannabis in 2016 but stopped short of adult-use cannabis legalization.

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New York Bill Would Require Some Health Insurers to Cover Medical Cannabis

2/07/2023

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A bill in New York would require some health insurers to cover medical cannabis for state-registered patients by deeming it a “prescription drug,” “covered drug,” or “health care service,” Staten Island Live reports. A memo attached to the bill, states that “Access to medical marijuana should not be limited to those who can pay out of pocket. Efforts by registered organizations to offer discounts have helped, but are inadequate for many low-income patients.”

“Some state is going to have to force this issue,” state Sen. Diane Savino (D) said on the Senate floor. “I believe that our state is the one that should lead the way on this.”

If approved, the law would apply to public health insurers in the state, including Medicaid, Child Health Plus, Elderly Pharmaceutical Insurance Coverage (EPIC), and Essential Plan programs.

The legislation would also authorize the health commissioner to certify medical cannabis dispensing sites as Medicaid providers solely for dispensing medical cannabis. Under current New York state law, practitioner office visits related to patient evaluation and certification for medical cannabis are Medicaid-reimbursable services, and practitioners who participate with Medicaid are prohibited from asking for payment for medical cannabis certification from the member, regardless of whether the certification is provided during the initial office visit or subsequent to the first visit, according to the state Office of Cannabis Management.

The measure is currently in the Senate Health Committee.

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Study: Limited Evidence that Cannabis ‘Hangovers’ Stymie Performance

2/07/2023

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A new study by researchers at Australia’s University of Sydney suggests that there is little evidence to support the notion that cannabis “hangovers” can stymie performance. The researchers evaluated 20 published studies investigating the effects of THC more than eight hours after consumption and found most didn’t detect “next day” effects of cannabis use and the studies that did were limited. 

“Some lower quality studies have reported ‘next day’ effects of THC on cognitive function and safety-sensitive tasks. However, most studies, including some of higher quality, have found no such effect. Overall, it appears that there is limited scientific evidence to support the assertion that cannabis use impairs ‘next day’ performance. Further studies involving improved methodologies are required to better address this issue.” — “The ‘Next Day’ Effects of Cannabis Use: A Systematic Review,” Cannabis and Cannabinoid Research, Dec. 6, 2022 

The researchers found that 61% of the reviewed studies found no “next day” effects caused by cannabis use, 35% found “unclear or ambiguous next day effects,” with just 4% finding negative “next day effects”; however, the researchers describe those studies as “low quality” and note that they were all published more than 18 years ago.  

In a press release, Dr. Danielle McCartney, a research fellow with the University of Sydney’s Lambert Initiative for Cannabinoid Therapeutics, noted that individuals are told “not to drive or perform other safety-sensitive tasks for 24 hours after cannabis use,” but the study “found little evidence to support this recommendation.”  

“Policy makers should bear in mind that the implementation of very conservative workplace regulations can have serious consequences, such as termination of employment with a positive drug test,” the study authors said. “They can also impact the quality of life of individuals who are required to abstain from medicinal cannabis used to treat conditions such as insomnia or chronic pain for fear of a positive workplace or roadside drug test.” 

 

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Medical Cannabis Bill Reintroduced in North Carolina

2/07/2023

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A medical cannabis bill has been reintroduced in North Carolina that would cover 11 conditions in addition to end-of-life and palliative care, WRAL reports. The bill would also establish a Compassionate Use Advisory Board that could add more conditions to the state’s medical cannabis qualifying list.

The legislation would allow patients with cancer, epilepsy, HIV, AIDS, amyotrophic lateral sclerosis (ALS), Crohn’s disease, sickle cell anemia, Parkinson’s disease, post-traumatic stress disorder (PTSD), multiple sclerosis, cachexia or wasting syndrome, severe or persistent nausea in a person who is not pregnant that is related to end-of-life or hospice care, or who is bedridden or homebound because of a condition, terminal illness when the patient’s remaining life expectancy is less than six months, and conditions resulting in the individual receiving hospice care, according to the bill text.

A PTSD qualification would be “subject to evidence that an applicant experienced one or more traumatic events.” And acceptable evidence would include “proof of military service in an active combat zone, that the person was the victim of a violent or sexual crime, or that the person was a first responder.” The bill notes that “details of the trauma shall not be required.”

The measure would allow cannabis flower, vaping, and edibles.

The bill was sent to the Senate Judiciary Committee last month and, if voted favorably by the committee, it would move next to the chamber’s Finance Committee. If approved by the Finance Committee, it would be heard by the Senate Rules and Operations Committee.

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Federal Judge: Ban on Cannabis Users Owning Firearms Is Unconstitutional

2/06/2023

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A federal judge in Oklahoma ruled last week that the federal law barring people who use cannabis from owning firearms is unconstitutional, the Associated Press reports. Lawyers for Jared Michael Harrison argued that his Second Amendment rights were violated by the federal law that outlaws “unlawful users or addicts of controlled substances” to possess firearms and U.S. District Judge Patrick Wyrick in Oklahoma City agreed, ruling that federal prosecutors’ arguments that Harrison’s cannabis use “justifies stripping him of his fundamental right to possess a firearm … is not a constitutionally permissible means of disarming Harrison.” 

In May 2020, Harrison was charged after being arrested by police in Lawton, Oklahoma following a traffic stop. During a search of his vehicle, police found a loaded revolver as well as cannabis. Harrison told police he had been on his way to work at a medical cannabis dispensary, but that he did not have a state-issued medical cannabis card.    

Federal prosecutors argued that the portion of the law focused on drug use is “consistent with a longstanding historical tradition in America of disarming presumptively risky persons, namely, felons, the mentally ill, and the intoxicated.” 

Wyrick disagreed, writing in his opinion that “the mere use of marijuana carries none of the characteristics that the Nation’s history and tradition of firearms regulation supports.” He added that using cannabis was “not in and of itself a violent, forceful, or threatening act,” according to a Reuters report.  

Wyrick ultimately dismissed the charges against Harrison. 

Laura Deskin, a public defender representing Harrison, told Reuters that the ruling was a “step in the right direction for a large number of Americans who deserve the right to bear arms and protect their homes just like any other American.” 

  

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Cannabis Tax Revenues in Colorado Fall Nearly $100M from 2021-2022

2/06/2023

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Cannabis tax revenues in Colorado have fallen nearly $100 million from 2021 to 2022, the Denver Gazette reports. In 2021, during the coronavirus pandemic, the state collected $423 million in cannabis taxes, which fell to $325 million in 2022. In 2020, the state collected $387 million in cannabis taxes. 

Last year, more than $675 million of cannabis taxes collected in Colorado went to the Marijuana Tax Cash Fund. The Public School Capital Construction Assistance Fund received nearly $391 million, the Public School Fund got $276.6 million, and the rest was divided between local government ($138.38 million) and the state’s general fund ($135.99 million), the report says. 

The Marijuana Industry Group Executive Director Truman Bradley told the Gazette that retail cannabis sales are down across the state.  

“I don’t have a crystal ball as to the future, but there are a few things I know definitively: The first is decade number two of legalization in this state needs to look fundamentally different than decade number one. The cannabis industry is extremely compliant and it can be a good source of revenue for state and local governments, but we need to take a hard look at the regulations that were first put in when no one knew how this was going to go and assess whether that’s actually appropriate or whether it’s time to maybe relax those a little bit.” — Bradley to the Gazette 

During the pandemic, when Colorado imposed stay-at-home orders and many employees shifted to working remotely, cannabis consumption increased. Since then, Colorado has seen reduced sales due, in part, to shifts in consumer behavior, more states legalizing adult-use cannabis, and less disposable income due to inflation. 

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Washington Bill Would Create Agricultural Agency for Cannabis

2/06/2023

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A bill introduced in Washington state aims to create a cannabis commission that would function like the other agricultural commissions already operating in the state, FOX 13 reports. Lawmakers supporting the legislation say the commission would help growers and producers compete nationally if or when the federal government loosens restrictions and opens up the entire U.S. market. 

Republican Rep. Kelly Chambers told FOX 13 that the Washington State Cannabis Commission would “be self-funded by the industry, kind of a mandatory fee.” 

The commission’s purposes would include research, advertising government agencies, reviewing market metrics, educating and advising producers, advancing knowledge and practice, limiting youth access, and grant powers for acquiring, creating and owning intellectual property rights, licenses and patents, the report says. 

“Creating and developing intellectual property rights. So, we have other commissions we have a wine commission and a potato commission that promote Washington wine or Washington potatoes. So, sort of do the same thing.” — Chambers to FOX 13 

Chambers added that were federal laws loosened there would be “a lot of competition,” adding that cannabis producers in Washington – among the nation’s first legal producers – have a lot of pride in what they have created.    

The measure is currently in the House Regulated Substances and Gaming Commission. 

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Washington Bill Would Increase Taxes on High THC Products

2/03/2023

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A bill proposed in Washington state would significantly increase the tax on cannabis products depending on THC concentrations, FOX 13 reports. Under the proposal, cannabis excise taxes would be restructured into three rates based on product type and THC concentration.  

The measure would also limit the purchase of high-THC products to individuals aged 25 and older. 

Under the bill, a 37% tax would be imposed on flower and concentrate products with THC concentrations less than 35%; a 50% tax would be added to flower and concentrate products with THC levels between 35% and 60%; and a 65% tax would be included on the sales of flower and concentrates with THC levels higher than 60%. 

Rep. Kelly Chambers (R) said that since Washington legalized cannabis for adult use a decade ago, “the market has driven the demand for higher-potency products.” 

“So, that’s why they are very popular, and they are out there. At the same time, we want to maintain that public safety.” — Chambers via FOX 13  

Adan Espino, the executive director of the Craft Cannabis Coalition, told FOX 13 said the high taxes give the organization “heartburn and worries” because they could just drive people into the unregulated market. He noted that high THC cannabis products “should not be in the hands of youth or minors and … when used improperly … can certainly cause harm.”    

The measure is currently in the House Regulated Substances & Gaming Committee.

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Report: Zero Medical Cannabis Markets Are Fully Meeting Patients’ Needs

2/03/2023

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In its annual “State of the States” report, Americans for Safe Access (ASA) issued 13 failing grades to state medical cannabis programs, with Idaho and Nebraska both receiving a zero as the last two remaining states with no medical cannabis access. 

In the report, ASA gave failing grades to Georgia, Idaho, Indiana, Kansas, Kentucky, Mississippi, Nebraska, North Carolina, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming. 

No state received an “A” grade, with Connecticut, Illinois, Maryland, Michigan, and Rhode Island earning B-pluses – the highest grade given on the ASA report card.  

The ASA also issued grades for the medical cannabis programs of U.S. territories, including the Commonwealth of the Northern Marina Islands (D+), Guam (C-), Puerto Rico (D), and the Virgin Islands (D+).

“While we can acknowledge that we have come a long way since the first medical cannabis law passed in 1996, we must also recognize that none of the state laws adopted thus far can be considered ideal from a patient’s standpoint.” — ASA, “State of the States” 2022

The group notes that “even in states with full medical cannabis programs, each state differs greatly in how patients can access their medicine, where they can access it, or even what types of products they can access.” Adding that because medical cannabis remains prohibited federally “most state programs leave out millions of potential patients due to issues with affordability, patient rights, and civil protections, or product safety standardization.” 

None of the states earned above a B-plus grade by the ASA because none “include the entire range of protections and rights that should be afforded to patients under the law, with some lagging far behind others.”  

“Because of the differences and deficiencies in legislation and regulations in the states, patients argue that the laws do not function equitably and are often poorly designed, poorly implemented, or both,” the ASA says in the report. “Even well-organized programs can fail to deliver safe or legal access in states with laws that allow local governments to ban medical cannabis businesses from operating, leaving thousands of patients without the access state laws were intended to create.”

The ASA estimates the number of medical cannabis patients in the U.S. exceeds 6 million, an increase of about 1 million from its 2021 report.   

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Argentina Launches Hemp and Cannabis Agency

2/03/2023

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Argentina recently launched a hemp and cannabis agency, the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME), which officials hope will help create new jobs and exports for the nation, Voice of America reports. During a conference announcing the move, Economy Minister Sergio Massa said the new agency “opens the door for Argentina to start a new path in terms of industrial exports, on the basis of huge global demand.” 

“All this needs to be transformed into an industry which generates work, which generates exports for Argentina and which generates value.” — Massa via VOA 

The South American nation legalized cannabis oil for medical use in 2017, allowing the government to grow cannabis for research and medical purposes. In 2020, lawmakers legalized the home cultivation of cannabis for medical purposes, made it legal for pharmacies to sell cannabis-derived products, and required insurers to cover cannabis medicines.  

Francisco Echarren, who will head the agency, said the cannabis industry could create thousands of new jobs, technological developments, and new products for export. 

“We have a huge challenge ahead of us,” he said during remarks at the conference, “not only getting a new industry on its feet, but giving millions of Argentines access to products that improve quality of life.” 

Last month, Argentina’s Ministry of Science said it plans to invest more than $106 million in 13 research and development projects in hemp and cannabis across six provinces, according to a Hemp Today report.  

The government estimates hemp and medical cannabis industries in Argentina could create 10,000 new jobs, $500 million in domestic sales, and $50 million in exports annually.  

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Virginia House Panel Tables Bills Seeking to Enact Retail Cannabis Sales

2/02/2023

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A Virginia House panel on Tuesday rejected bills that would have taken steps toward allowing adult-use cannabis sales in the state, WRIC reports. The General Laws subcommittee voted down a measure that would have allowed sales to start next year and another that would have allowed the Virginia Cannabis Control Authority (CCA) to begin issuing licenses next year but prohibiting sales until 2025. 

Virginia lawmakers passed adult-use cannabis reforms in 2021 – when both chambers of the legislature and the governor’s office were controlled by Democrats. The laws have since faced pushback as Republicans made gains in both chambers in 2022 and Virginians elected Republican Glenn Youngkin as governor.   

The bill proposed by Del. Keith Hodges (R) would have allowed licenses to be issued at the start of next year but would have allowed adult-use sales by certain medical cannabis companies in July. A substitute was introduced that proposed that the CCA issue draft regulations on the retail market that lawmakers would have to approve.  

The measure introduced by Del. Michael J. Webert (R) would have allowed the CCA to issue cannabis licenses in 2024 but not allow adult-use sales until the following year. Webert told the committee that his bill would ensure tracking “from seed to sale,” set THC limits, and impose a 12% tax rate on cannabis sales. 

Currently, adults 21 and older in Virginia can possess up to an ounce of cannabis, grow up to four plants, receive cannabis as a gift, or buy it from a medical dispensary. 

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Jim Belushi to Give Keynote at NECANN’s 2023 New England Cannabis Convention

2/02/2023

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America’s most well-known cannabis cultivator, Jim Belushi, will join NECANN’s New England Cannabis Convention for a fireside chat on Saturday, March 11.

An accomplished actor, comedian, and musician, Jim will be sharing the lessons and skills he’s learned as a commercial grower and owner of Belushi’s Farm.

Jim joins a lineup of over 120 cannabis industry expert speakers at the convention, which features 2 sold-out exhibit halls with over 300 displays, 5 daily programming tracks, and 4 workshops over 3 days. NECANN will also present the 5th annual New England Cannabis Community Awards on Friday night, and the winners of the 2023 NECANN Cup will be announced on the exhibit floor on Saturday.

The convention will be far and away the largest B2B cannabis industry event ever presented, with over 10,000 industry professionals coming together for the 3-day event at the Hynes Convention Center in Boston.

NECANN has been developing engaging conventions for the cannabis industry since 2014, and now produces the largest convention in Massachusetts, New York, New Jersey, Illinois, Vermont, Connecticut, Maryland, Virginia, and Maine, expanding market opportunities for businesses, entrepreneurs, investors, educators, patients, advocates, and consumers. NECANN conventions hold a unique place in the event space, taking a collaborative approach with the local industries and communities, which has resulted in consistently high returns for exhibitors, sponsors, attendees, and the local cannabis market as a whole, allowing everyone to benefit and grow.

“We’re happy to say that The New England Cannabis Convention continues to defy industry norms by growing yet again in 2023,” said NECANN Founder and President, Marc Shepard. “Both exhibit halls sold out over 2 months before the show and we had the highest number of speaker applications we’ve ever seen. This event has truly become ‘The Annual Meeting of the Northeast Cannabis Industry.'”

If you’d like to see what NECANN conventions look like, click on one of the links below for a short highlight reel:

NECANN Boston
NECANN New Jersey

To learn more about joining the NECANN community as an exhibitor, sponsor, speaker, or attendee, please visit us at NECANN.com

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Oregon’s Top Liquor & Cannabis Regulator Steps Down

2/02/2023

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The longtime head of the Oregon Liquor and Cannabis Commission (OLCC) Steve Marks is out after a nearly 10-year stint in the position, Willamette Week reports. Gov. Tina Kotek (D) had asked for and received his resignation, and Marks informed OLCC staff of his departure on Wednesday.

“The governor has indicated that she’d like to select a new executive director. And a transition plan is currently being worked on. Further details will follow.” — OLCC communications director Mark Pettinger, via Willamette Week

During his tenure, Marks oversaw the launch of the Oregon adult-use cannabis industry, set up the state’s initial cannabis licensing and regulation processes, and generated record amounts of alcohol-related revenue for the state. He has also been praised by business owners from the industries he regulated for displaying flexibility during the coronavirus pandemic, easing the burden for struggling businesses by loosening takeout cocktail regulations and expanding options for delivery and curbside pickup, the report said.

Marks’ departure comes at the end of a wave of changes under Gov. Tina Kotek, who was elected last November and has been in office for less than a month.

The change also comes following an announcement that the top cannabis and alcohol regulator in neighboring Washington state — Rick Garza of the Liquor and Cannabis Board (LCB) — will be stepping down to retire later this year after working 25 years at the agency.

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North Dakota House Rejects Adding Edibles to Medical Cannabis Program

2/02/2023

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The North Dakota House on Tuesday voted down two bills to allow edible products in the state’s medical cannabis program, KFYR reports. The bills would have amended the state’s voter-approved medical cannabis law and, therefore, required two-thirds support to pass.  

During the vote, Rep. Steve Vetter (R) said the bills aimed to give “something the people wanted.”  

“The people voted for this, and now here we are, six years later, trying to give the people what they originally asked for.” — Vetter via KFYR 

Proponents of adding edibles to the program argued they are healthier than smoking or vaping. Opponents raised concerns of the risks to children. Medical cannabis patients in North Dakota have access to flower, concentrates, tinctures, capsules, transdermal patches, and lotions. 

The bills would have only allowed edible squares and lozenges 

The state’s medical cannabis program has 8,898 active patient cards. There are two manufacturing facilities and eight dispensaries statewide, according to the Bismarck Tribune. 

Similar bills to add edible products to the state medical cannabis program have failed since 2019. 

Last November, voters rejected a ballot measure to legalize cannabis for adult use. The initiative failed by a 55% to 46% margin. It was the second defeat for the reforms in the state, where North Dakotans voted down a similar measure in 2018 59% to 41%.      

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LeafLink Raises $100M in Series D Funding Round

2/02/2023

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Cannabis B2B technology company LeafLink has raised $100 million in Series D financing, the company announced today. The fundraising round, which will be funded in two tranches, was led by CPMG, L2 Ventures, and Nosara Capital, along with participation from existing investors. 

Ryan G. Smith, who Wednesday was elevated to the company’s executive chairman of the board of directors, said the financing provides LeafLink “with a strong balance sheet that will enable continued innovation alongside … customers.” 

“Despite recent headwinds, the cannabis industry is poised for significant growth in the years ahead. Since the company’s inception, our team has built solutions that solve some of the industry’s most critical problems. I’m proud to have served as CEO since LeafLink’s founding and am excited to transition into the role of Executive Chairman where I’ll remain deeply committed to LeafLink and the industry as a whole. I look forward to supporting and empowering the team in their roles.” — Smith in a statement 

Additionally, LeafLink appointed President & Chief Operating Officer Artie Minson to a new role as president and CEO, hired Karan Gupta as chief technology officer, and transitioned Chief Technology Officer Zach Silverman into a senior advisor role.  

LeafLink said the company serves about half of the U.S. wholesale cannabis industry across 30 markets. The firm said it has raised more than $230 million of equity to date as well as a $250 million credit facility to provide liquidity to the cannabis supply chain.

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Republican Rep. Introduces Bill to Reschedule Cannabis

2/01/2023

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U.S. Rep. Greg Steube (R-FL) has introduced legislation to reschedule cannabis from a Schedule I to Schedule III substance under federal law. In a press release, Steube’s office said the measure would allow “researchers to access federal funds to determine its medical value.”   

According to the “Marijuana 1-to-3 Act” text, the proposal specifically directs the Drug Enforcement Administration (DEA) to make the change. 

Under federal law a “Schedule I controlled substance is a drug, substance, or chemical that has a high potential for abuse; that has no currently accepted medical use; and that is subject to regulatory controls and administrative, civil, and criminal penalties under the Controlled Substances Act.” While a Schedule III controlled substance “is a drug, substance, or chemical that has less potential for abuse than a schedule I or II substance; that has a currently accepted medical use; and that has low or moderate risk of dependence if abused.” 

Last October, President Joe Biden (D) said his administration would take steps to consider rescheduling cannabis but, thus far, has not made any changes to the Controlled Substances Act as it relates to the scheduling of cannabis.  

Steube has introduced legislation twice before to enact the change – in 2019 and 2021 – but the measure did not receive a hearing or consideration in the House, which was led by Democrats during that time. The House currently has a Republican majority.  

Last month, Steube also reintroduced the “Veterans Cannabis Use for Safe Healing Act” which would allow veterans to “receive the appropriate treatment to address their healthcare needs by prohibiting the Secretary of Veterans Affairs from denying a veteran benefits due to the use of medical marijuana in states where the substance is legal,” his office said in a press release. 

The rescheduling bill was sent to the House Energy and Commerce and Judiciary committees.  

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